SK Tes Expands Global Battery Recycling Capacity to 40,000 Tons
SK Tes, the global leader in sustainable IT, data center, and battery technology lifecycle services, has announced that investments in its battery recycling facilities will increase capacity to 40,000 tons annually. This expansion is in response to the growth of electric vehicles and the global need to sustainably recycle scarce battery component materials like lithium and cobalt.
Currently, SK Tes facilities in Singapore, France, and Shanghai, China, can process more than 15,000 tons of batteries annually. New production capabilities in Korea (Gyeongju), the Netherlands (Rotterdam), China (Yancheng), Australia (Newcastle), Hungary, and Kentucky (USA) will bring the company’s total global capacity to over 40,000 tons per year.
By investing in recycling capacity near centers of economic growth, SK Tes is positioned to lead the battery recycling market globally.
"The three most important factors for winning the waste battery recycling market are a dense collection network to secure future waste battery volumes, a prime location as a hub, and internalization of rare metal extraction technology. Together with our parent company, SK ecoplant, we have secured these three points and are ready for the global market," said John Oh, Chief Strategy Officer for SK Tes.
Growing Demand for Lithium-Ion Batteries and Black Mass Materials
Demand for lithium-ion batteries used in hybrid and electric vehicles tripled from 2020 through 2022, according to the International Energy Association. Manufacturers’ demand for lithium exceeded supply in both 2021 and 2022, even as lithium production increased by 180%.
This trend highlights the need for rapid growth in the battery recycling industry to meet rising demand. Recycling electric vehicle batteries helps reduce the need for newly mined materials such as lithium, cobalt, and nickel.
The global market for "black mass" — processed materials from batteries — is expected to grow from $9.2 billion in 2022 to $52.9 billion by 2031, with a compound annual growth rate of 21%.
SK Tes and SK ecoplant aim to create a closed-loop supply chain in which up to 98% of key raw materials from waste batteries are recovered and returned to the battery manufacturing process.
SK Tes provides end-to-end lifecycle management services — from e-waste and battery recycling to IT asset disposition and professional services like managed deployment, equipment decommissioning, and onsite data destruction.
“Sustainability is at the core of everything we do. With this focused investment, SK Tes will continue to embrace the circular economy and preserve resources for industry and for future generations,” Oh said.
For more information, visit www.sktes.com.
About SK Tes Lithium Battery Recycling
Since our formation in 2005, SK Tes has become a global leader in sustainable technology services and tailored solutions to manage the full lifecycle of technology devices and components.
Our services span from deployment to decommissioning and final disposition — including recycling and end-of-life repurposing. We innovate new processes to extract value from recyclable assets, such as our proprietary lithium battery recycling process, which achieves high purity rates that allow recovered materials to be reused in the manufacturing supply chain.
Our mission is to securely, safely, and sustainably transform and repurpose one billion kilograms of assets by 2030. With 40 owned facilities across 22 countries, SK tes delivers consistent service levels, lower logistics costs, local compliance expertise, and deep knowledge of global transboundary movement.
